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Jamie-Law
Jamie-Law, Solicitor
Category: Law
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Experience:  Solicitor
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I have just started my own business selling childrens shoes

Resolved Question:

I have just started my own business selling childrens shoes online, a few suppliers at a trade show warned me a local shop owner (8 miles from me) might complain and refuse to buy from them again if they sold to me.
One supplier gave me an account, sold me some shoes, then on my second order emailed me to say existing retailers in your area that you have been selling and delivering shoes locally at discount prices.
And as a premium brand and we cannot accept this sale arrangement which we feel will devalue the brand. For this reason I am sorry but we cannot continue to support me.
My prices are clear on the website and this is completely untrue, also there is only 1 other retailer in the area (the one who would complain) and i suspect she has kicked off so they are using this as an excuse.
Is there anything i can do? Ive contacted what was the OFT but to honest dont think i'll hear anything back.
Kind regards
Submitted: 10 months ago.
Category: Law
Expert:  Jamie-Law replied 10 months ago.

Hello my name is ***** ***** I will help you with this.

Do you have terms of business on the account? Did you sign anything?

Customer: replied 10 months ago.
I completed a new account application form which i signed - it just had name, address, bank details etc and said i agreed to the terms and conditions - these were just about payment and delivery.
I recieved an email saying this:
It is absolutely fine that your business is on line. Your on line RRP must be in line with our retailers' mark up, cost price x 2 minimum. Your terms of trading will be same as retailers, and your orders in the first two seasons will be Proforma invoice. This will be reviewed and can be changed to standard credit terms sooner.
Expert:  Jamie-Law replied 10 months ago.

Did you have an account and they have ended it?

Customer: replied 10 months ago.
Expert:  Jamie-Law replied 10 months ago.

They cant terminate your account, it does not say they can. It certainly does not say they can terminate for discounting.

You should write and ask them to reinstate the account or say you will seek a Court order.
If they refuse then you can issue proceedings and get an injunction to make them supply you.

You would need to complete forms N208 and N16a which you can find online.

But unless the terms say they can terminate the account or specifically terminate for discounting, then they can NOT do this.

Can I clarify anything for you about this today please?

Customer: replied 10 months ago.
As I didn't discount anyway, are they obliged to provide evidence i did? Do they legally have to respond to me say within 14 days?
Also Is there anything i can do about the other retailer as i can see this happening with some of the other suppliers now. Explains why there's never been another shoe shop in the area!
Expert:  Jamie-Law replied 10 months ago.

They would need to provide evidence yes. They dont have to respond but if they refuse then its easier to get a Court order.

Sadly there is nothing you can do about the other retailer - I am sorry

Does that clarify?

Customer: replied 10 months ago.
thank you
Expert:  Jamie-Law replied 10 months ago.

If this answers your question could I invite you to rate my answer before you go today, otherwise the site doesn’t pay me for the time spent with you. Thanks in advance and good luck.

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